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2014 Supreme(Bom) 1139

IN THE HIGH COURT OF JUDICATURE AT BOMBAY, NAGPUR BENCH, NAGPUR
A.P. BHANGALE, J.
Mahendra s/o. Mahadeo Deshbratar - Appellants
Versus
Kailash s/o. Bhauraoji Chandankhede - Respondent
SECOND APPEAL NO.293 OF 2009
Decided on : 12.6.2014

Advocates appeared:
Mr. C.S. Samudra, Adv. for the Appellant.
Mrs. Ketki Jaltare, Adv. with Mr.A.M.Kulkarni, Adv. for the Respondent.

Headnote:Specific Relief Act, 1963 - Section 4 - Specific performance of agreement to sell. - Plaintiff, paid earnest money, ready and willing to purchase land entitled for specific performance of agreement to sell. - The plaintiff had paid the earnest money by cheque in the sum of Rs. 50,000/- and was ready and willing to purchase the land. Under these circumstances, when the agreement was entered into by the first defendant to sell the suit land, it was not open for the first defendant to execute the sale deed in favour of the third party without any prior consent of the plaintiff; particularly when the obligation in the nature of written contract was created in favour of the plaintiff to insist upon execution of the sale deed. The first defendant was not justified to hide this fact of written suit agreement from any third party. There could not have been any valid excuse for the first defendant to execute the sale deed in favour of the third party (second and third defendants in this case) on the pleaded ground that the suit agreement was not properly stamped and hence, it was bogus. This contention by the defendants was not proved in both the Courts below. Even otherwise, as held by the Gujarat High Court in the ruling in Laxmiben W/o. Chinubhai Bapalal Modi and others, 1982 (2) Guj LR Vol. XXIII 426, the matter of requisite stamp duty payable is the question between the State and the person liable to pay it. Once judicial authority has decided to admit the document into evidence though unstamped, the third party has nothing much to do about it. Section 36 of the Stamp Act (2 of 1899) lay down a rule that once insufficiently stamped document is tendered in evidence and marked as exhibit in the case without any objection in the trial Court so as to invite judicial determination to decide its admissibility, the Court is prohibited from re-opening the matter after the document gets admitted in evidence. In the case in hand, upon perusal of the evidence led by the parties on record, the first Appellate Court took cognizance of the legal position and was well within its discretion as final Court of facts to grant relief of decree for specific performance of the suit agreement. This was also in consonance with the legal position as explained in the case of Prakash Chandra v. Angadlal and others, reported in AIR 1979 SC 1241 that ordinary rule is to grant specific performance of the agreement. When the vendee is ready and willing to get the sale deed executed from the vendor pursuant to the agreement to sell, relief can be granted particularly when the onus is squarely upon the subsequent purchaser to establish that he or they are innocent purchaser without notice of the suit agreement. This onus was not discharged by evidence in both the Courts below.

       Stamp Act, 1899 - Section 36 - Document insufficiently stamped. - Once insufficiently stamped document is admitted in evidence, Court cannot reopen matter.

ORAL JUDGMENT :

1. This Second appeal is filed by the appellant (original defendant) against the Judgment and Order, dated 8.5.2009 passed by Adhoc District Judge4, Nagpur in Regular Civil Appeal No.607 of 2008, which was allowed and whereby the decree was granted for specific performance. The said First Appeal arose from the Judgment and Order, dated 20.9.2008 passed by the 3rd Civil Judge (Sr.Dn.), Nagpur (trial Court) in Regular Civil Suit No. 34 of 2004. The suit was partly decreed for refund of earnest sum only with interest.

2. Brief facts are as under :

An agreement to sell (Exh. 30) in respect of the suit land i.e. agricultural land bearing Survey No. 74, admeasuring 1 H. 62 R situated at village Khedi, District Nagpur was entered into on 20.12.2000 to sell the suit land for the consideration of Rs.1,89,000/-, out of which Rs. 50,000/- as earnest sum was paid on 20.12.2000. However, on 10.4.2001, Sale deed (Exh.48) was executed by defendant no.1 in favour of defendant nos.2 & 3. The plaintiff had sued for specific performance of the suit agreement.

3. The prayer in the suit was for specific performance of the agreement to sell the suit land pursuant to the agreement (Exh.30). Suit was defended on the ground that the plaintiff had advanced a sum of Rs. 50,000/- to defendant no.1 and that the said agreement to sell, dated 21.8.2000 was not duly stamped and was bogus.

4. The trial Court recorded findings in favour of the plaintiff that the agreement to sell, dated 21.8.2000 was proved and earnest sum of Rs 50,000/- was paid by cheque.

The trial Court, however, curiously recorded finding that the sum was advanced as loan and in view of the subsequent sale deed of the suit land in favour of defendant nos.2 & 3 executed by defendant no.1, the trial Court refused to grant the decree for specific performance.

5. The first Appellate Court’s findings were challenged on the ground that the sale deed (Exh.48) executed was admissible document in evidence and it was not necessary to examine the attesting witnesses thereof. The appellant also challenged admissibility of the agreement to sell (Exh.30) in evidence. On behalf of the respondent/plaintiff, it is contended that the document could not have been questioned as, in view of Section 34 of the Bombay Stamp Act, duty and penalty is payable for admissibility of the document and when the compliance is made, in view of the Section 35 of the Stamp Act, admissibility of the document cannot be questioned.

6. The present appeal was admitted on the following substantial question of law :

1. Whether the first appellate Court was justified in holding that agreement dated 21.8.2000 (Exh.48) between defendant no 1 and defendant nos. 2 and 3 cannot be admitted in evidence as the same is not duly stamped when the respondent/plaintiff did not raise any objection when the said agreement dated 21.8.2000 was being exhibited in the evidence adduced by the appellant/defendant ?

2. Whether the first appellate Court was right in granting the decree for specific performance of contract in favour of the plaintiff in absence of plea that appellant nos. 2 & 3 had purchased the suit property with notice of agreement (Exh. 30), dated 20.12.2000 and that the sale by defendant no 1 in favour of defendant nos. 2 & 3 was sham and bogus and only an arrangement ? I must answer the questions raised in the affirmative for the following reasons :

7. On behalf of the appellants it is submitted that there was hand loan of Rs 50,000/- advanced from the plaintiff and the agreement to sell was not duly proved and therefore, the first Appellate Court ought not to have decreed the suit.

8. On behalf of the respondent, it is urged that there is no substantial question of law to entertain the Second Appeal. It is liable to be dismissed in view of Section 100 (5) of the Code of Civil Procedure. On merits, it is submitted that, in both the Courts below, the plea by the defendant of hand loan was proved false. Furthermore, there was no









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